Download - Pricing policies and strategies examples
CHAPTER 11:PRICING POLICIES &
TECHNIQUES
Christian LarocheMrs. Davis
6th Period – Entrepreneurial Ventures
FLEXIBLE PRICE POLICY
Flexible-Price Policy offer the same product to
customers at different negotiated prices.
An example of Flexible Price Policy is cars, because
you usually buy cars at negotiated contracts. For
example if you buy a yellow or red Camero, you have to
pay $500 more.
ONE PRICE POLICYOne Price Policy
is one in which all customers are
charged the same price for all the goods and services offered
for sale.An example of One
Price Policy is anything you buy at a store that
is non negotiable or can only be bought at one price, like a 2 liter
bottle of Sprite.
PRESTIGE PRICINGPrestige Pricing
Is used to foster a higher image. Cheap products are
not taken seriously by some buyers unless they are
priced at a particular level.
For example, if you saw a shirt at Nordstrom and you saw the same shirt at Men's
Warehouse, you would most likely buy it from
Nordstrom because you believe its better quality
because of the higher price; when in reality they are the
same shirt.
Odd/Even PricingOdd/Even Pricing Is when a business uses
odd/even pricing technique to make their customers think they
are getting a bargain. Studies show that when the prices are different, like $197 triggers in
our brain as cheaper.For example, Walmart might have the brand new plasma
screen TV and you think it’s a bargain because it is set at $797,
but if it was set at $800 you might not even think of buying
it.
Price LiningPrice lining,
is a marketing process where products or services within a
specific group are set at different price points. The
higher the price, the higher the perceived quality to the
consumer, and it also helps to lead people to the price range
they can afford.For instance, a store that sells
jeans at $20, $40, and $60 which shows the customers which price range the belong to and may sway them into buying the more expensive
pair.
Promotional PricingPromotional PricingIs a policy that involves reducing the price of a
product or service to attract customers ; its usually a
temporary sale that attracts a lot of customers.
For example, McDonalds might come out with new
popcorn chicken bites and for the first 2 weeks there only
$2 per box. After they attract all the customers and get
people to try and like their new chicken, they raise the
price up.
Multiple-Unit PricingMultiple-Unit Pricing
is used to set a single price for two or more of the
same product. It is used to convince the customer that they are getting a benefit by purchasing more than
one product at a good price.
For example, one two liter of Pepsi might be $1.80,
while you can purchase five two liter bottles for $5. It makes the customer want to buy 5 instead of only 1.
Bundle PricingBundle Pricing
is a form of promotional price adjustment that
offers discounted pricing when customers purchase
several products at the same time.
For example, businesses that sell computer
hardware often use bundle pricing to sell software that
may not have sold otherwise. The customer
thinks their getting a package deal and will end
up paying more money then they intended.